Natural Gas Stocks Have No Steam
This afternoon, the price of natural gas declined to another new 52 week low. This decline in natural gas comes despite the winter season being upon us. While the price of natural gas is extremely low, it is now affecting the natural gas stocks. Leading natural gas stock such as Chesapeake Energy Corp (NYSE:CHK), Devon Energy Corp (NYSE:DVN), and Southwestern Energy Co (NYSE:SWN) are all declining sharply lower. These stocks look as if they could have further downside in the near term.
Southwestern Energy Co is the weakest of all the natural gas companies according to the charts. This stock just made a new 52 week low today. SWN stock is trading lower by $2.41 to $30.10 a share. Should this current $30.00 area fail to hold as support the next important support level will be around the $27.50 level. Natural gas continues to remain in a sharp downtrend and also looks as if further downside is in the cards for the near term.